About Economics

The social science that studies the production of goods, its distribution or in the case of services, the provision of such services, and lastly the consumption by the end-user, is termed as economics. It investigates how people, corporations, governments, and nations determine resource allocation resources. Economists believe that humans operate rationally and seek the greatest proportion of gain or value, and this is at the heart of economics. The sciences of labor and commerce are the foundations of economics. Because human labor may be used in a variety of ways and resources can be obtained in a variety of ways, economics must establish which approaches produce the best outcomes.

History of Economics

The 8th-century B.C. Greek farmer/poet Hesiod was one of the earliest known economic philosophers, writing that work, materials, and time needed to be distributed properly to combat shortages. When Scottish philosopher Adam Smith penned An Inquiry into the Nature and Causes of the Wealth of Nations in 1776, many consider it to be the starting point of modern economics in the United States and other developed countries.

Characteristics of Economics

  • The field of economics examines how individuals individually and collectively make decisions on the use of limited resources for the purposes of production, distribution, and consumption.
  • Microeconomics and macroeconomics are the two primary branches of economics that look at the behavior of individual consumers and producers on a local, national, or worldwide scale.
  • Economics is particularly concerned with production and exchange efficiency and employs models and assumptions to understand how to design incentives and policies that would optimize efficiency.
  • Economists create and publish a variety of economic indexes, such as GDP and the Consumer Price Index (CPI).
  • Socialism, capitalism, and communism are all forms of economic systems.

Conclusion

The premise (and paradox) of economics is that human beings have inexhaustible desires while living in a world with limited resources. As a result, economists value concepts like productivity and efficiency highly. They claim that higher production and resource efficiency will lead to a higher quality of life.

Following are some of the multiple choice questions on the Economics with answers that will help the students in developing their knowledge.

Economics MCQ

1. What is a producer?

  • a person who gives goods away
  • things people would like to have
  • the exchanged of goods and services without the use of money
  • a person, company, or country that makes grows, or supplies goods for sale

2. What is demand?

  • the amount of an item you have
  • how many people want your good/service
  • the money you have left over after you paid your bills
  • None of these

3. What is a consumer?

  • a person who takes things
  • a person who purchases goods and services for personal use
  • a person who takes good away
  • the economic factors affecting the price, demand, and availability of a commodity

4. What is profit?

  • the amount of an item you have
  • how many people want your good/service
  • the money you have left over after you paid your bills
  • None of these

5. Interdependence means

  • One country depends on another
  • Two countries depend on another country
  • Two countries economies rely on each other
  • Taxes are higher

6. What is supply?

  • the amount of an item you have
  • how many people want your good/service
  • the money you have left over after you paid your bills
  • Both A & B

7. What is Gross Domestic Product?

  • Goods, services, and intermediate products bought by people in other countries.
  • the total value of goods produced and services provided in a country during one year
  • The amount of output the average worker can produce in an hour.
  • None of these

8. What is a need?

  • Nothing
  • Something you have to have to live
  • Something you would like to have
  • Ice cream

9. What is consumption?

  • How a good is moved
  • How a good is created
  • How a good is used
  • How a good is destroyed

10. Another word for money

  • barter
  • economics
  • currency
  • price

11. What is a want?

  • A person
  • Something you would like to have but don't need to live
  • Purple
  • Something you need to live

12. What is a free market economy?

  • An economy based on supply and demand with little or no government control
  • The international exchange of goods
  • An economy in which decisions are made by the government
  • An economy that is communist

13. Which of the following is not a service?

  • Dry Cleaner
  • Car Wash
  • Clothes
  • Babysitter

14. Income set aside for unexpected expenses

  • savings
  • goods
  • services
  • producer

15. A person who buys goods and services

  • consumer
  • entrepreneur
  • resource
  • currency

16. Economic System where there is limited technology and ideas are passed down from generation to generation

  • Command
  • Traditional
  • Mixed
  • Market

17. The majority of the least developed countries can be found on which continent?

  • Africa
  • Asia
  • Europe
  • South America

18. Basic things humans need to survive

  • need
  • want
  • import
  • demand

19. A general increase in prices

  • price
  • inflation
  • scarcity
  • demand

20. What type of economy does the United States have?

  • traditional
  • mixed
  • command
  • market

21. Not having enough

  • scarcity
  • supply
  • human resouce
  • taxes

22. Tools we use to make products

  • capital resources
  • human resources
  • natural resources
  • entrepreneurs

23. Type of Economy where Supply and demand determine prices with little gov intervention

  • Command
  • Market
  • Mixed
  • Traditional

24. Which of these jobs is involved in production?

  • Secretary
  • Factory worker
  • Truck driver
  • Zoo keeper

25. When something given up for something else is called?

  • Choice
  • Capitalism
  • Inflation
  • Opportunity Cost

26. What term refers to a good that leaves a country?

  • Export
  • Import
  • Trade
  • Distribution

27. Services provided by people

  • human resource
  • import
  • scarcity
  • consumer

28. The amount available

  • supply
  • demand
  • import
  • natural resource

29. How much of a good or service consumers want

  • demand
  • spending
  • producer
  • scarcity

30. A person who purchases a good or service

  • consumer
  • taxes
  • supply
  • good

31. A person who provides a good or service

  • producer
  • need
  • want
  • consumer

32. Things purchased by consumers

  • goods
  • consumer
  • producer
  • supply

33. How much of something is available

  • supply
  • demand

34. The amount of money we pay for a good or service

  • currency
  • price
  • inflation
  • economics

35. Something we use from nature

  • natural resource
  • human resource
  • capital resource
  • entrepreneur

36. The place where goods and services are exchanged

  • barter
  • currency
  • market
  • resource

37. Something we pay for that we can touch

  • goods
  • services

38. How much people want something

  • supply
  • demand

39. The using up of a resource

  • scarcity
  • supply
  • services
  • consumption

40. Not being able to meet all wants at the same time

  • demand
  • supply
  • scarcity
  • None of these

41. Actions that people do for others

  • goods
  • services
  • supply
  • None of these

42. A farmer would fall under which economic activity?

  • Primary
  • Secondary
  • Tertiary
  • All of above

43. New technology that increases the speed of production would have what impact on the prices of goods?

  • Prices would lower
  • Prices would increase
  • Prices would stay the same
  • Business would close

44. What term refers to a good that comes into a country?

  • Trade
  • Migration
  • Export
  • Import

45. A good made in the United States and sent to other countries

  • export
  • consumer
  • savings
  • taxes

46. Goods made to use in the production of other goods

  • capital resouces
  • demand
  • taxes
  • export

47. What do you call someone who makes or provides a good or service for purchase?

  • Producer
  • Consumer
  • Demand
  • Supply

48. What is a good which is produced domestically but sold in a foreign country?

  • Import
  • Export
  • Gross Domestic Product
  • Human Development Index

49. What is the calculation of the value in USD of all the goods and services

  • Import
  • Export
  • Gross Domestic Product
  • Human Development Index

50. An increase in competition would have what effect on price?

  • Price goes up
  • Price stays the same
  • Price goes down
  • It explodes

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